US Inflation Drops to Zero in 12-Months Ended September

U.S. inflation fell for the second consecutive month in September, driven down by plunging gasoline prices even as the cost of food continued to rise. On the other hand, core inflation, which strips out food and energy prices, advanced more than expected.

In September, the Consumer Price Index (CPI) dropped 0.2% after falling 0.1% in August, according to a U.S. Labor Department report released Thursday, October 15.

Energy prices tumbled 4.7% for a second straight monthly drop. Gasoline prices fell further, down 9%. Compared to a year earlier, energy prices are 18.4% lower and gasoline prices are 29.6% lower.

Elsewhere, food prices marked a fourth consecutive monthly rise, up 0.4% last month after two prior matching increases of 0.2% and the 0.3% advance in June. They are 1.6% higher than a year ago.

So-called core consumer prices rose 0.2% in September after gains of 0.1% in both August and July.